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Nba Endgame: Do Salaries Matter?

Author

Listed:
  • Frank TENKORANG

    (Department of Economics, University of Nebraska-Kearney, Kearney, NE 68849, USA)

  • Bree L. DORITY

    (Department of Economics, University of Nebraska-Kearney, Kearney, NE 68849, USA)

  • Eddery LAM

    (Department of Economics, University of Nebraska-Kearney, Kearney, NE 68849, USA)

Abstract

This paper estimates the association between salary dispersion and the probability that an NBA team leading two minutes before the end of a playoff game won the game. Economic theory indicates the a priori relationship is ambiguous and the existing empirical literature finds mixed results as to the direction of the relationship. We use game-level data from the 2012 and 2013 NBA playoffs and allow the association to be nonlinear. Overall, our results indicate there may be U-shaped relationship between salary dispersion and win probabilities; however, the point estimates individually and jointly are not statistically significant. Thus, we conclude there is no evidence in our sample that salary dispersion and NBA win probabilities are related.

Suggested Citation

  • Frank TENKORANG & Bree L. DORITY & Eddery LAM, 2014. "Nba Endgame: Do Salaries Matter?," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 14, pages 51-62, December.
    • Handle: RePEc:aic:revebs:y:2014:d:14:tenkorangf
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    References listed on IDEAS

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    More about this item

    Keywords

    Salary dispersion; labor economics; National Basketball Association;
    All these keywords.

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • D2 - Microeconomics - - Production and Organizations

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